Litecoin: Architecture, Features, and Challenges

This report provides an overview of Litecoin, including its architecture, features, and challenges. It also discusses the use of Bitcoin Cash for replay attacks and attracting miners. The report concludes with a comparison between Litecoin and Bitcoin.

Running head: NETWORK APPLICATION MANAGEMENT
Network Application Management
Name of the Student
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Table of Contents
Introduction....................................................................................................................................2
Discussion.......................................................................................................................................2
Litecoin.......................................................................................................................................2
Architecture...........................................................................................................................2
Feature...................................................................................................................................3
Challenges..............................................................................................................................3
Use of Bitcoin Cash.....................................................................................................................4
Prevention of replay attacks..................................................................................................4
Attract Miners........................................................................................................................4
Compare Litecoin and Bitcoin cash............................................................................................4
Conclusion......................................................................................................................................5
References......................................................................................................................................6

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Introduction
Litecoin is considered to be an open source and global network which has been created by
forking bitcoin [2]. This particular technology aims in reducing average block time, increase supply and
modification of mechanism structure. At present Litecoin is considered to be seventh largest technology
in the domain of blockchain with respect to market capitalization. Litecoin is considered to be best
alternative to bitcoin technology. Both Litecoin and Bitcoin comes up same notion but with different
technical characteristics [7]. In the year 2013, Litecoin gained huge amount of popularity with increase
in fivefold in just three-day interval. Cryptocurrency aims to look for some alternatives for making huge
amount investment in Bitcoin technology.
The upcoming pages of this report mainly provide an idea about Litecoin with respect to use and
popularity. After that various aspect like architecture, features and lastly challenges with respect to
Litecoin has been discussed in details. An analysis has been carried out with respect to application of
bitcoin cash for replay attacks and attract miners. The last section of the report mainly deals with
differences and similarities between Litecoin and Bitcoin has been discussed in details.
Discussion
Litecoin
Litecoin is one of the best technology which is needed for handling various kind of payments [6].
Litecoin is known to be efficient for energy consumption in the whole mining method. Some of the
original based consumer grades can easily handle the overall mining. Litecoin can be considered to be
different from Bitcoin as it has fast block generation rate. It makes use of different kind of algorithm
known as Scrypt [9]. Block generation is considered to be four times like Litecoin which emphasizes on
faster transactions times.
Architecture
Litecoin is considered to be oldest kind of cryptocurrency which was launched in the year 2011.
It comes up with various kind of features like bitcoin which is much lighter and much faster. It comes up
much better kind of shock generation which is around 2.5 minutes. Litecoin tends to work on the top of
IP protocol which aims in connecting internet in together way. It can be considered to be peer to peer
connection which focuses on flat network with no kind of single control on server node. Each node
comes up with equal kind of role which is needed for providing and consuming services. It emphasizes

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on the behalf for users for their Litecoin wallets. The peer to peer nature of Litecoin which focus on
supply of the currency which is regulated by the given authority. The deflation property of this Litecoin is
distributed in an uneven way. The supplied nodes can be considered to be miners which are not
generated by the given currency needed for securing the network. Litecoin architecture comes up three
levels of architecture like blockchain platform, Litecoin protocol, and Litecoin currency layer. Litecoin
comes up with two kinds of function like API and algorithm. API comes up mediate access which is
needed for this blockchain platform. Algorithm comes up drive and control miners which are needed for
this network. The architecture of Litecoin can be easily understood with help of the diagram provided
below.
Fig 1: Architecture of Litecoin

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(Source: [6])
Feature
Litecoin is considered to be an open source software which is independent verification of
binaries and along with source codes [7]. Litecoin comes up with various kind of technological
development which helps in maintaining its position as cryptocurrency.
Industry Integration: Litecoin is considered to be fork of bitcoin which can result from two
currencies that have same kind of characteristics. This particular technology is considered to be one of
the well-integrated kind of cryptocurrency in this particular domain [9]. It can enjoy huge amount of
benefit which is needed for exchange, ATM and online merchants and lastly developers. It is totally
backed by loyal and passionate community.
Blockchain: Litecoin blockchain has been designed in such a way that it can easily handle huge
of transactions in comparison to bitcoin. By the implementation of frequent blockchain, lighting and
lastly segregation witness. Litecoin networks aim to provide support for high volume of transaction with
is needed for modifying the network the software in the upcoming future. This particular Litecoin makes
the whole thing much efficient for various merchant and customers [16]. Litecoin is considered to be
effective for various merchant and customers which can help in much faster confirmation at times along
with lower fees.
Mining: Litecoin comes up with an algorithm named Scrypt which helps in understanding the
whole mining process. Scrypt can easily allow much higher degree of processing in parallel way [10]. It is
considered to be more accessible to large number of miners in comparison to some of the traditional
algorithm. By the help of Scrypt, the overall process of mining of Litecoin can easily come into picture
without any kind of use of ASIC based mining hardware. It is mainly needed for mining of coins by
making use of SHA-256 algorithm. At present, Miners can easily make use of 25 new kinds of Litecoin on
every block. On an average, the whole amount is halved on 4 years’ interval of Bitcoin supply.
Challenges
Litecoin comes up large number of disadvantages like
Exposure of Litecoin can cause Scam and fraud: With the increase in the popularity of
cryptocurrency, Litecoin tends to have some medium for specific scams and frauds [8]. It can easily be

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used for handling some massive attacks like breaches. Another kind of cryptocurrency does not require
necessary which is making profit to large number of people.
Delay transaction: The biggest challenge which is encountered in Litecoin is transaction speed
[6]. The transaction speed is considered to lower in comparison to some other cryptocurrencies. Litecoin
can easily carry out six to eight transaction on average second basis.
Dark marketplace working towards the damage: Litecoin tends to attractive for various
criminals because of high visibility of offenders [14]. The user can be threatening for corroding the
overall system. If the system encounters outweigh activities, then it can easily result in marginalization.
Price Swings: Litecoin has encounter price which is volatile over the short periods of time. In
the last few years, the price of Litecoin has decreased a lot [12]. There are some other of factors like
Hacks and Scam which is the main notion behind the fluctuation in the price.
No recovery option: If the user forgets the wallet key then the whole is gone and user cannot
access it anyhow [9]. In Litecoin only user is assigned the given private key or the password and no one
else has access to the password. The decentralization nature of Litecoin can easily make the arbitrate
type of disputes between the users. Some of the cryptocurrencies come up with refund option.
Replacement by potential cryptocurrencies: There is large number of cryptocurrencies which is
being created with new additional features [4]. User can make use of smart contracts that can make the
providers accountable for the given promises.
Use of Bitcoin Cash
Prevention of replay attacks
Bitcoin cash aims to provides two kinds of methods for replay of protection both of which can
be easily opted. If the user does not create transaction which has these features, then these
transactions can replay. The first method is all about redefining of sighashing based algorithm which is
considered to be specified to use of BIP 143 [7]. Sighash algorithm is generally used in at the time of
sighash flag which comes up with bit 6 set. This particular kind of transaction can be considered to be
invalid for non- UAHF based chain. It will ultimately result in invalid transaction as it has different
sighash algorithm. It merely highlights the fact that if the individual wants to look for transaction on
UAHF based chain then non-UAHF chain is considered to be second one [5]. The second option which
can be used is OP_return output at the extraction of string.

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Attract Miners
Bitcoin cash is coming up with a plan for modification and adjusting with proof of work. It is
considered to be difficult and faster than the standard of 2016. The adjustment is considered to be part
of Bitcoin network. Bitcoin cash comes fixed idea which is needed for reducing the difficulty level. Prior
to any kind of analysis, the user needs to have idea with respect to median time past. It can be defined
as the centripetal block or median that last even for seven blocks which tends to work on blockchain
[10]. MTP emphasizes understanding the time for which the upcoming blocks can be mined. Almost
every kind of cryptocurrency depends heavily on network miners. It is generally so that there is smooth
running of various transaction. Bitcoin cash can easily attract huge number of miners which is needed
for improving the overall hash rate. Just because of its popularity, its price has gone very much like
Bitcoin classic. In the last few years, Bitcoin Cash mining is all about attracting the miners due to its
easiness. The market price is considered to be higher compared to Bitcoin classic [16]. By the help of
Bitcoin cash, block development can easily rise 15 hours in the given hour. It is all about suggesting large
number of miners that can operate on blockchain. Currently, there is large number of bitcoin coin cash
for circulating to mining.
Compare Litecoin and Bitcoin cash
In the year 2009, Bitcoin was launched along with different version of codes. Litecoin is another
such version which has been launched in successful in the year 2011 [1]. The main notion of launching
Litecoin is making the transaction a bit faster. Litecoin at present is the seven largest kind of
cryptocurrency in the domain of market capitalization. The main notion behind creating the Litecoin
technology is all about improving the overall speed with respect to volume and transaction [3]. Both
Litecoin and Bitcoin tend to work in much similar way. Litecoin can be considered to be very different
from bitcoin in terms of faster block generation rate. It makes use of different kind of algorithm known
as Scrypt.
Generation of block is considered to be four times as fast on Litecoin which highlights much
faster transaction. It has ultimately made easy handling of payments. Litecoin is known to be very much
energy efficient in the handling large number of payments. Litecoin is considered to be very efficient in
the domain of energy consumption in the whole mining method. Ordinary consumer based computers
can easily handle the overall mining process [9]. Litecoin is needed for retaining the deflationary
features for Bitcoin by keeping a limit on the maximum number of coins. Many times it is referred digital
silver to bitcoin digital gold. Litecoin and Bitcoin come up with some particular coin limit and an amount

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is generally awarded for understanding the blocks in the whole mining process. Bitcoin comes up with a
coin limit of 21 million while Litecoin comes up with a coin limit of 84 million. As soon as these
cryptocurrencies reach their limit, new cryptocurrency is released in the system. Both Bitcoin and
Litecoin make use of proof of network at the time of mining process [13]. It is mainly needed for
safeguard and detecting of attacks along with abuse of cryptocurrency based networks.
Conclusion
The above pages help in concluding that this report is all about Litecoin and its application.
Various aspects like architecture, features, and challenges with respect to Litecoin has been discussed in
details. An analysis has been carried out with respect to application Bitcoin cash for domain that is
prevention of replay attacks and attracting miners. The last section of report mainly deals with
differences and similarities between Litecoin and Bitcoin. Bitcoin mining makes use of SHA-256
algorithm while Litecoin makes use of Scrypt algorithm. The overall transaction speed of Litecoin is
considered to be much faster than bitcoin. Litecoin comes up with some kind of drawbacks like
orphaned blocks. Orphaned blocks mainly tend to occur when Litecoin miners can produce block at
different times. In the year 2017, Litecoin is considered to be direct competitor of newly created Bitcoin
cash. Both of these cryptocurrencies have been designed in such that it can make the transaction much
faster and easier. It generally allows both the cryptocurrencies for acting like a payment mechanism and
looking for much wide adoption. Bitcoin Cash comes up with advantage for much larger block size. While
Litecoin appears to focus on implement advance solution which is needed to improving the speed of
transaction.

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References
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31-43), 2015.
[3] Böhme, R., Christin, N., Edelman, B. and Moore, T. Bitcoin: Economics, technology, and
governance. Journal of Economic Perspectives, 29(2), pp.213-38, 2015.
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https://lightning. network/lightning-network-paper. pdf, 2016.

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Conference on Financial Cryptography and Data Security (pp. 507-527). Springer, Berlin, Heidelberg,
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